London’s housing crisis persists.

Despite significant planning policy reforms and major investment in housing since the election, the pressure on the capital’s housing remains.  

London renters still face sky-high costs. Homelessness in the capital continues to rise. And buying a home feels increasingly out of reach for all but the most affluent Londoners. 

The situation demands a bold and multi-faceted response to ensure London’s housing system functions for all. Through this project, we’re taking a fresh look at our housing crisis, examining the issues from all angles to develop real solutions. 

London faces a dual housing crisis. 

Firstly, we face a persistent shortage of new homes. Between 1996 and 2021, London’s population grew by 29%, while housing stock increased by only 23%. We are not building homes at the pace the city has grown. Densification, regeneration and New Towns present routes to delivering new homes at scale. However, from high land costs to skills deficits, building in London presents unique challenges, particularly for much-needed social and affordable homes.  

London is also experiencing a deepening crisis of housing distribution as much as one of overall supply. When examined through the lens of floorspace – the aspect of housing we ‘use’ – rather than the number of individual homes, there is in fact ‘more housing’ available per person in London now than there was three decades ago. This is despite the population expanding by more than a quarter. However, this increase in floorspace has been unevenly distributed, in a ‘winner-takes-all’ dynamic, where affluent owner-occupiers now have much more space, while private renters face historic levels of overcrowding. These distributional inequalities may partly explain why the housing crisis has continued to worsen despite decades of efforts to increase housing supply. 

London’s uniquely dysfunctional housing system requires a comprehensive response to unlock the homes the city needs. We need solutions that both increase the supply of homes and better match housing supply to housing need. 

Our Research  

This research is the flagship project under the Housing Theme in our Developing London programme. Our research will comprise an in-depth literature review on the dual aspect of the crisis, statistical analysis on London’s housing system, and a series of advisory groups and interviews with high-profile experts and sector leaders.  

The outcome of this work is to produce a report and advocacy outputs which will:  

• Present an authoritative account of the barriers to the supply of homes in London, both the delivery of new build and use of existing stock, and the steps that can be taken to overcome them. 

• Raise awareness of the barriers and solutions amongst policymakers, investors and London’s decision-makers, and set out a compelling case for interventions that build confidence in London’s housing future.